Matrix Communications Group plc

('Matrix' or the 'Group')

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2004

Matrix Communications Group Plc ('Matrix' or 'The Group'), the UK's
communications integrator of choice for leading edge technologies, today
announces its unaudited results for the six months to 30 April 2004.

Highlights

* Turnover up 3,381,000 to 3,697,000

* Gross profit up 1,493,000 to 1,640,000

* Group Pre-tax profit up 822,000 to 550,000 (including minority interests)

* Net Assets up 3,146,000 to 4,473,000

* loss-making satellite communications business sold in January for 30,000

* acquired and successfully integrated three profitable IT companies during
the last 6 months in line with its core strategy

Ian Smith, CEO, commented:

'This has been a defining period for the company and we are delighted to be
reporting on the success we have achieved over the six months. As well
achieving significant organic growth from our existing businesses we have
delivered on our core objective to extend our offering and client base through
acquisition. Over the period we have succeeded in acquiring and integrating a
further three companies into the group, transforming Matrix into the UK's true
integrator of choice. As an enlarged Group we have recently won contracts with
Vodafone, B.A.R Honda and The London Internet Exchange and have engaged in a
number of talks for other exciting contracts. Looking forward, the challenge
for us now is to capture the consolidated cost efficiencies in the enlarged
Group and exploit the numerous cross-selling opportunities that are available
to us through our matured commercial relationships with our present client
base. In this period we have made great progress in turning the company around
and building a solid base of recurring revenues and high margin product mix
with leading blue chip companies. I look forward to reporting to you on our
future progress'


molatovkid - 01 Jun'04 - 07:34 - 173 of 173 edit



Embargoed Release: 07:00hrs Tuesday 1st June 2004

Matrix Communications Group Plc

(`Matrix')

Re Agreement

The Group has concluded heads of terms to acquire a profitable mid-tier
distribution business from the 1st August. This will enable Matrix to continue
to develop its market position and maintain its strong margin growth by
strengthening its key vendor relationships.

As emerging technology segments start to cross over and consolidate, it is very
important that the Group has access to Key Vendor relationships so that 'best
of breed' solutions can be offered to it's customers.

The current annual turnover of the business is 5.5m.

Further Information:

Ian Smith, CEO

Grevis
Good news all round. What is the Investors Chronicle?

Ted1: It's reckoned to be one of the most informed financial weekly publications. They seem to have a lot of influence with small investors, especially those who like penny stocks.

Is it a weekly or monthly publication and how much is it? Cheers Grevis

From danielstewart.co.uk :

As anticipated, there has been some profit-taking over the past two months after a very strong share price performance during 2004 (See note 1 st June 2004). On the basis of our revised forecasts, the company is currently trading on a FY05 PER of 18.0, falling to 13.9 for FY06. By contrast the UK Software and Services sector is trading on a FY05 PER of 13.6x falling to 11.7x in FY06.
We believe that a premium is warranted given Matrixs margin strength (EBITDA
margins of 16% compared with other VARs with 5%), operations in high growth markets (high speed networking, security and VOIP), a blue chip customer base and considerable cross-selling opportunities. Our forecasts also do not include the impact of large contracts where Matrix has been shortlisted for consideration, most notably Vodafone Global. We maintain our long term buy recommendation and 4.75p price target, equivalent to a FY05 PER of 22.6x.

From another BB:

Gigabit Ethernet switches are premium products with few qualified VARs and continue to enjoy premium pricing unlike the commodity sub-gigabit Ethernet market that is dominated by Cisco. As a result, MNS and Bedrock generate 25%+ gross margins, compared with the more typical 15-20%.

The companies also generate much higher revenues per head than the rest of the sector.
---

sounds good.

Ted1

Available at all newsagents fridays weekly 3.25 or Year 120.

Many thanks seadog

Nice bit of buying at the end of the day. Bodes well for Monday.

Morning all. NIce bit of buying since 9.00 AM

6 August
Investors Chronical:

Matrix continues to grow impressively
Matrix Communications is further bolstering its offerings by splashing out up to 4.9m on three new businesses. This is the latest in a long line of positive announcements from the integrated network solutions provider since it changed its name from Offshore Telecom in March. Buoyed by a number of impressive contract wins and a strong management team, which includes the former UK managing directors of Cisco Systems, Foundry Networks and Extreme Networks, Matrix has transformed itself.

The key has been to add both network services and critical mass via acquisitions. And the latest additions - Bedrock Networks, Norwood Adams Systems (NASL) and the remaining 50 per cent of Norwood Adam Technical Services (NATS) - further endorse this strategy.

The combined contribution to the group will be a further 8.6m annual turnover and 1m profit. Importantly, as well as strengthening the group's customer base, the additions should enable Matrix to capture greater market share through diversification of branding, territory and customer profile.

Matrix has also announced that it has won a series of contracts - worth over 1.5m over the next 18-24 months - to supply a range of products and services to Betfair.

The evolution of Matrix has been rapid. And underpinned by its aggressive acquisition strategy (totalling six in 18 months), the group looks set to continue increasing market share. It has clearly demonstrated its model by winning new contracts and further earnings-enhancing acquisitions can be expected.

Another tick up. Now that's better!

BUT ITS DOWN AGAIN

what the hell is happening this share is down 25% in one week..all the talk all the hype as not helped a jot...

Matrix reloads on acquisition front
MCG adds Norwood Adam and Bedrock Networks to earlier buys
Ben Tudor, Computer Reseller News 08 Aug 2004
ADVERTISEMENT

Matrix Communications Group (MCG) has bought distributor Norwood Adam and reseller Bedrock Networks for 2.5 and 2.4m respectively.

The valuations depend on both firms meeting performance targets.

MCG, which changed its name from Offshore Telecom in March this year, also paid 100,000 last year for a half-share in Norwood Adam Technical Services, a network operations centre business set up by the distributor which reported a turnover of 614,000 for its latest financial year.

MCG also bought Intrinsic Networks in December 2003 and Decorum Networks in April this year, and owns a reseller arm: Matrix Network Solutions.

Manny Pinon, sales and marketing director at Norwood Adam, said: "It's going to be business as usual for us, except with the clout of a plc behind us. There will be no changes, except that we are now recruiting."

Andy Palmer, UK managing director of Foundry Networks, said the deal will make Matrix one of the largest networking integrators in the country, providing alternative products to those of Cisco.

But Jon Murphy, product manager at VAR Data Integration, expressed concerns. "It will be interesting to know how it will handle the conflict of interest between distribution and reselling. It would be unwise to jump to any conclusions, but it does create a potential doubt," he said.

Pinon added: "Stigmas about this sort of thing have eroded. For example, take Computacenter and Metrologie. If VARs have an issue, I urge them to call me."

Bedrock, an Extreme reseller founded in 2001, recorded turnover of 4.1m and a profit of 1.1m for the year ended 31 July 2003. David Grant, who set up Bedrock after leaving his position as Extreme's UK managing director, will take a seat on MCG's board

you only have to look at the ftse,aim,techmark to see why this aint flying

can someone explain why when there is over 750,000 straight buys the price does not move up and yet a sell of say 150,000 and down it goes gggrrrr matrix

Seems as though the MMs are reacting to sellers rather than buyers. Just makes me wonder if there is a big sell order in the background.

grevis, is it me or is advfn still down?

Still down PM.

btw That 340k buy was mine, was rather hoping it would have moved something!